American Opportunity Tax Credit

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What would you do to get $2,500 for attending UC?

Would you share this with your parents? (HINT: you should!)

The American Opportunity Tax Credit is a federal program that provides up to $2,500 a year to help offset the cost of your tuition, fees, books, and supplies during your first four years of college. Talk with a tax professional or visit Tax Credit for details, but here are the basics.

How do I qualify?

If you're like most UC undergraduates, your parents claim you as a dependent and will file for the tax credit ont heir tax return. They may qualify for it if they earn less than $180,000 a year ($90,000 for single filers) and if you're enrolled as an undergraduate at UC at least half time. If you are not claimed as dependent, you may qualify according to the same income limits. Filers who don't qualify for the American Opportunity Tax Credit may qualify for the Lifetime Learning Tax Credit.

How do I claim the credit?

If your parents claim you as dependent on their tax return, be sure to give them the IRS "Tuition Statement" Form 1098-T that UC will send you in the mail. Consider signing up to receive your 1098-T electronically so you can email the form to your parents.

If you file your own taxes, your tax preparer or tax filing software will guide you through the process. Be sure to include the 8863 Form.

How much will I get?

The maximum credit is $2,500. Even if you do not owe taxes, you may be able to receive up to $1,000 (40% of the credit is refundable!)